Mozambique: ENH cancels dozens of tenders, but nothing to do with Total suspension – Carta

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Mozambique: ENH cancels dozens of tenders, but nothing to do with Total suspension – Carta

7:09 CAT | 06 May 2021

in file CoM

On 27 April, the National Hydrocarbon Company (ENH) cancelled a dozen public tenders in Maputo, Vilankulo and Pemba. Tenders range from the construction of infrastructure to the provision of services.

Interestingly, the cancellation took place days after the suspension of Mozambique’s Total-led LNG project, of which ENH, the state’s hydrocarbon business arm, forms part.

Claiming “force majeure” justification, Total also admitted the possibility of the project being delayed by at least one year, which will postpone the start of production to 2025.

The suspension and possible delay of the project raises the possibility that ENH will record losses arising mainly from the unsustainability of the debt, contracted with State guarantees, which facilitates ENH’s participation in that and other projects.

In the cancellation announcement, ENH explains that the measure falls under number one of article 61 of Decree 05/2016 of December 8 – Regulation for the Contraction of Public Works, Supply of Goods and Provision of Services to the State.

The aforementioned article says: “The Contracting Entity must cancel the tender, in the case of the existence of events occurring after the Tender Announcement that have proven to modify the public interest in the procurement, namely, in cases of budget review and other duly justified and previously established circumstances in the Bidding Documents”.

Being less than fully enlightened by the aforementioned explanation, ‘Carta’ contacted the ENH Communication Office, and clarified that the cancellation of the tenders is due to the fact that they are “out of time, having been launched in 2019,” and that the measure [the cancellation of tenders] “has nothing to do with [the suspension] by Total of the Mozambique LNG Project being installed in Area 1 of the Rovuma Basin, in northern Cabo Delgado province”.

By Evaristo Chilingue

Source: Carta de Moçambique